CA AJR4

Requests President Biden to immediately terminate the ACO REACH Model, a Medicare program that privatizes Traditional Medicare through Accountable Care Organizations that enroll seniors without full knowledge or consent.

States REACH payment model creates incentives to restrict care by allowing ACOs to keep as profit what they don't spend on health services, potentially spending as little as 60 percent of Medicare payments on actual care versus 98 percent in Traditional Medicare.

Notes REACH enrollment grew from 1.8 million beneficiaries in 2022 to 2.1 million in 2023, with 132 participating ACOs (27 serving California), many owned by private equity firms.

Argues the REACH model drains Medicare billions annually, increases administrative costs, and shifts patient care decisions from doctors to private insurers rather than filling coverage gaps.

Directs the Chief Clerk of the Assembly to transmit the resolution to the President, Department of Health and Human Services, Centers for Medicare and Medicaid Services, and all California members of Congress.